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Whys that-the capital gains is the buffer between you making money or loosing money. So if you only need .41% cap gains your property must be very close to cash flow neutral?

huh im confused? I its negatively geared you are already loosing money every year. As a result you are, like me, counting on capital gains to make up at least the difference...so at current or projected interest rates (I used 8% interest only) what growth do you need to off set the losses?

Hi bigtone-it was a very quick and dirty back of the envelope type calc.. Basically...Total property income less total property expense plus negative gearing saving = x Then I just looked at how much cap gains I need per year in order to match the loss of x per annum...

Been crunching some numbers and was interested to see I need cap gains of around 1.5% at 8% interest rate on some of my properties for them to be break even, after that they cost me money. So who else has done something like this and where do you stand?